Financial Statements, Tax & The IRD

Financial Statements, Tax & The IRD


So why do I have to prepare Financial Statements and Tax Returns anyway?
In New Zealand, all business and investment income earners are required to furnish an income tax return. This is so the Inland Revenue Department can assess and collect (and refund!) tax for the Government of New Zealand.

Financial Statements - The system of Accounting
To accurately calculate tax, a set of double entry financial statements are required to be prepared and communicated to the New Zealand Inland Revenue Department, this is done via the IR10. The preparation of Financial Statements for the purpose of reporting tax require the laws of New Zealand to be contemplated (and other jurisdictions in some cases) as part of that preparation process. There are plenty of non-qualified accountants out there filing tax returns and putting their clients in harms way because they do not have the appreciation of all appropriate legislation. They only apply what they know. And therein lies your risk. You get what you pay for in this respect. Look for a Chartered Accountant. A CA will provide a positive return on your investment with them.

Our View of the role of the Chartered Accountant
To act as an independent party in the interest of you, the client. Some accountants forget that, we don't. It's front of mind in our service provision to our clients. We act for you, not the IRD. The chartered accountant ensures that you, the client adopt a tax position that is congruent with the laws of the land. But to be savvy and commercially astute about that process. To ensure that no stone is left unturned in terms of available deductions under the legislation and contemplating them on your behalf. To ensure that there is a tax strategy in place. To ultimately ensure that you the client achieves the best outcome and therefore income within the legal construct of that day at the time of preparation of that return.

Intelligent Commercial Validation
Designing and planning your business transactions enables you to set up the outcomes you want. Critically questioning the process and documenting your commercial rationale for an activity ensures that you are well placed to explain and validate your tax position should that ever be necessary.

Communication and Consultation
We prepare draft financial statements and a draft tax position giving you the opportunity to discuss the position taken before it is finalised and communicated to IRD.

Our OFFER to you if you are already in business
If you have a concern about the rigour that has been applied to your tax position by your existing provider, then upon your instruction we will review your set of financial statements in the strictest of confidence and provide our commentary. This review will be provided free of charge. If you would like to pursue a confidential discussion about your affairs then contact us today to arrange a meeting. To be prepared for this meeting you will need a set of your most recent financial statements and tax returns as prepared by your existing provider for our team to review.

Call us in confidence on +64 7 974 4813 to arrange a review of your affairs today.

Financial Statements, Tax & The IRD